For anyone that is unclear, one reason why it makes super sense is because working is the opportunity cost of building human capital – and the current payoff from working (or searching for work) is lower. Lower opportunity cost means more people now find it optimal to study 😉

Actually, one thing this cartoon didn’t correct for was other causal variables – like the size of the graduation that year, or population growth. I imagine if the population grew that could increase both unemployment and grad school enrolments …